Pioneering ideas for the last mile: 5 questions for Thomas Steverding

Thomas Steverding, Senior Group Manager, Operations Process & Development at DPD, is responsible for testing innovative logistics solutions for the parcel delivery company. He will be giving a presentation at MHLC Europe, spotlighting the most recent last-mile developments. In advance of the event, he spoke to SIMPLEXITY about the current situation in this space.

AT MHLC, YOUR PRESENTATION FOCUSES ON THE LAST MILE. WHAT EXACTLY IS THAT?

The last mile is the very last stretch within a logistics network, from the moment a parcel is dispatched to the moment it arrives at the consumer’s home (editor’s note: more details here). Here, the challenge is that the volume of parcels has increased rapidly in recent years, and will continue to rise, as a result of e-commerce. In combination with the current discussion about traffic density in inner cities and the resulting emission values, the entire industry is faced with the need to find new solutions.

NEVERTHELESS, THERE ARE MORE AND MORE PARCELS TO BE DISTRIBUTED – AND AS QUICKLY AS POSSIBLE, IDEALLY ON THE SAME DAY THAT THEY ARE ORDERED. HOW DO WE SQUARE THE CIRCLE?

It is an intriguing subject. On the one hand, there is ever-greater demand for fast delivery, ideally same-day delivery. In particular, the food industry is predestined for this form of distribution. In Germany, momentum is only just building, but our European neighbors are ahead of us. However, on the other side, there is a growing call for cuts in emissions, more efficient parcel distribution and sustainable solutions. These contradictory sides must be moderated in the best possible way and resolved with sensible approaches – this can be, for example, the combination of Same Day deliveries with “classic” deliveries.

WHAT ADDITIONAL APPROACHES ARE THERE TO SOLVED THE CHALLENGES ON THE LAST MILE?

Primarily, we need to bolster our resources on the last mile, for instance by expanding the network of additional parcel shops and parcel stations and using them more consistently for delivery. Direct delivery in person will remain but could be offered as an optional extra. In addition, the industry will increasingly switch to alternative forms of propulsion. This process is already in full motion, but also requires developments from the automobile manufacturers: The current ranges and vehicle sizes, however, are not yet suitable for practical use. Overall, there will be, in my opinion, no single panacea. Instead, we have to mix and match from a wide variety of possibilities. This will include solutions such as delivery by cargo wheel or future applications for the use of drones and autonomous vehicles. However, scalable deployment scenarios will certainly need several more years. In the future, there will not be a single solution in isolation anymore: we will put together a combination of solutions in accordance with the specific scenario. It will vary according to geographical location, the urgency of delivery, and the existing infrastructure.

PERSONAL DELIVERY AS AN OPTIONAL EXTRA: IS THAT REALLY FEASIBLE IN AN AGE OF BOOMING E-COMMERCE AND DEMAND FOR RAPID DELIVERY?

It is also a challenge for our society as a whole. I believe that the current sustainability debate can help to initiate a change in awareness here and that people are prepared to embrace change and the increased use of parcel shops or parcel stations.

HOW CAN DISTRIBUTION PROCESSES FOR PARCEL DELIVERY BE IMPROVED?

One key step is to provide technology support for the still predominantly physical process in parcel distribution centers, and to introduce automation wherever possible. To this end, we joined forces with Dematic to launch the PackMyRide pilot project. The goal was to relieve the driver of the physical task of sorting and loading parcels into the van. In the process, we were able to gain valuable insights that we intend to deepen further in the future. All of this against the background of using technology to make work processes simpler and more pleasant and thus also to make the job description of the delivery agent more attractive again.


Info box:

The Material Handling & Logistics Conference Europe 2020 will be taking place on March 8 and 9 in Stuttgart, Germany. Its target audience is decision-makers and other stakeholders in logistics and beyond. In addition to high-profile keynote speakers, more than 20 leading experts will be giving presentations sharing their most recent insights in four fields: big data, operations, labor and leadership, and next generation supply chain.

Note: The event has been postponed due to the corona virus (SARS-CoV-2) and will take place on a later date within the next six months. (as of 03/2020).